Facebook, Over $100B in value disappeared

July 27, 2018

43 Views

0 Comments

1 minute read

After the company’s quarterly earnings call with investors, FB’s stock price dropped ~20% in after-hours trading. Over $100B in value disappeared in an instant after FB announced disappointing revenue numbers and user growth.

Some context: that’s comparable to the entirety of General Motors, Ford and Target… combined.

Why did the stock tank? A perfect storm hit one of Facebook’s core features, the News Feed:

Less “viral” clickbait in the feed. Facebook has committed to optimizing for “time well-spent” in the app, not overall engagement. While this shift made for a better experience for users, FB can’t show users as many ads as before.